The work of Crown entities is immensely important for achieving results for New Zealanders, and for building a more efficient and better value-for-money government. Most of the services provided to New Zealanders by the State services are provided by Crown entities. Crown entities collectively employ around 70% of central Government employees, hold about 45% of fixed assets on the Crown's balance sheet, and account for more than one-third of total government expenditure.
The 2013 State sector reforms have significant implications for Crown entities. Delivery depends on better alignment of all parts of the State services to deliver better public services. Amendments were made to the Crown Entities Act 2004 (CEA), the State Sector Act 1988 (SSA), and the Public Finance Act 1989 (PFA) to make it easier for government agencies to operate more effectively. The amendments to the Crown Entities Act included:
strengthening the alignment of Crown entities through expanding board duties for statutory Crown entities to include collaboration
supporting functional leadership by expanding the scope for the use of directions to support a whole of government approach
formalising the role of the monitor
creating a new power for the Minister of State Services to request information on capability
streamlining planning and reporting from 1 July 2014 by providing for the possibility of four-year Statements of Intent, and more meaningful reporting on what has been achieved, and
simplifying the regime applying to Crown entity subsidiaries.